In the April 29 publication of the 2019 Miscellaneous Tax Resolution (MTR), the list of obligations that taxpayers must meet in order to be able to obtain a positive certificate of compliance (COC) was modified to:
- Have a valid Tax ID and confirmed tax domicile
- Be up to date in the fulfillment of
their tax obligations, which can be:
- Annual income tax returns
- Annual informative return for income tax withholding for wages and salaries
- Monthly income tax returns
- Income tax withholding monthly returns
- Monthly Value Added Tax (VAT) returns
- Monthly Excise Tax (IEPS) returns
- Suppliers informative declaration of operation with vendors (DIOT)
- Transfer pricing and oil and gas informative returns.
- A negative COC will result for those taxpayers filing zero monthly returns, while also issuing income invoices (CFDIs) in that same month.
There are additional rules that may apply to different taxpayers in regard to the COC. Please consult with your tax advisors for more information.
Prior to the modifications in the MTR, those taxpayers that sought to obtain the importers certificate from tax authorities had to appear as "reachable" in the tax mailbox, Now, all entities and individuals must meet this requirement, with an exception carved out for some strategic or protective entities.
Because of this, we highly recommend getting the tax authorities to validate the tax address immediately after obtaining an RFC as a corporation or as an individual. Validation is requested through the tax mailbox of the taxpayer, once this is done, the tax authorities will send an inspector to physically validate the tax domicile.
Please make sure to regularly monitor tax address status in your electronic mailbox.
What to do if a negative COC is issued?
In those cases when a negative COC is issued, the same document will show the exact discrepancies in the taxpayer´s records. The taxpayer will have the option of submitting clarification through the tax mailbox. This clarification should explain the reasons for the discrepancies or let the tax authorities know that the situation has been corrected. After submission, it should take a maximum of six business days to receive a response from the tax authorities.
Although the COC is a tax requirement, it has become a common practice for taxpayers, financial institutions and import/export brokers to request such documentation as part of their KYC policies. The tax authorities have not been clear as to the extent or consequences of a negative COC, therefore we encourage you to maintain a positive COC.
Finally, it is important to know the status of the taxpayer address in the tax mailbox and ensure that it appear as "reachable" If that is not the case, we highly suggest requesting a tax address verification. Be aware that authorities will request additional information in order to be able to confirm that the taxpayer is found at the tax address.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.